If you dispose of produced water you are no-doubt aware of the intensive earthquakes being observed across the Midland and Delaware Basins. In West Texas Earthquake Observations, Implications for the Oil and Gas Industry, Scott Pinsonnault and John Shepherd of Ankura Consulting summarize the evolving situation and the Texas Railroad Commission’s response. They also present a series of initial questions that will need to be answered.

You should read the report itself, but in short the Commission has determined that saltwater disposal injections contribute to seismic activity in three particular areas and has taken action, including limiting injections and stopping deep water injections in the area identified as the Gardendale SRA, giving operators 120 days to propose next steps in the Northern Culberson-Reeves SRA, and giving operators in the Stanton SRA 90 days to come up with a response plan. The RRC says it will implement its own plan if it is not happy with the industry’s response.

Surely we’ve not seen the end of this.

Your musical interlude.

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